insurance broker requests new policy # prior to termination
Good evening, I own a commercial property in NYC and recently sent a cancelation request to my insurance broker since I found a more affordable agent/plan.
He replied by asking me to sign a termination notice (understandable) but also requested that I furnish him with my new insurance name and policy number. Is that something I’m supposed to give him by law? Or can I chose to not give him that info?
Thank you
#2 Insurance Contributor
- Insurance Agent
- Nationwide
@Daniel Bryant this is standard practice in the industry. If the old insurance carrier does not have proof of the replacement policy, they are obligated by law to continue to cover the property for the next 30-60 days. This obligation allows them to continue to charge you premium for this timeframe.
Quote from @Jason Bott:
@Daniel Bryant this is standard practice in the industry. If the old insurance carrier does not have proof of the replacement policy, they are obligated by law to continue to cover the property for the next 30-60 days. This obligation allows them to continue to charge you premium for this timeframe.
I had no idea about this, learn something new everyday!
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Broker New York (#10401359681)
- 929-349-8042
- http://www.ClosedByMo.com
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Quote from @Jason Bott:
@Daniel Bryant this is standard practice in the industry. If the old insurance carrier does not have proof of the replacement policy, they are obligated by law to continue to cover the property for the next 30-60 days. This obligation allows them to continue to charge you premium for this timeframe.
Shocking, is there any legal citation for this online I can look up?
there are many things that caused me grave concern about insurance broker practices, so at this point I’d believe just about anything.
I’ve reached out to several brokers to get a quote and some of the agents told me they were blocked from getting access to the insurance companies by other agents. Never experienced anything like that before and we’ve had insurance for over 30 years.
#2 Insurance Contributor
- Insurance Agent
- Nationwide
@Daniel Bryant I wouldn't look online but in your policy. It will give all of the terms of cancellations and midterm changes.
In regards to getting blocked, that happens when multiple agents approach the same insurance carrier on your behalf. If you call 3 agents and they all approach Travelers, only the agent who is "First In" will get a quote from Travelers. The 2nd and 3rd agent will be "Blocked". Hope that clears it up.